Gold held an advance
from a five-year low as Federal Reserve Vice Chairman Stanley Fischer
said that U.S. policy makers have done their best to prepare
international markets for the first interest rate increase since 2006.
Bullion for immediate
delivery was at $1,081.52 an ounce at 8:17 a.m. in Singapore from
$1,082.21 on Thursday, when prices gained 1.1 percent as the dollar
fell, according to Bloomberg generic pricing. This week, the metal
remains 0.2 percent lower after dropping on Wednesday to $1,064.55, the
lowest since February 2010.
Bullion investors are
zeroing in on when higher U.S. borrowing costs are likely to start
rising as the metal doesn’t pay interest. The U.S. central bank, which
has held rates near zero since 2008, is contemplating lifting them as
the job market heals and officials gain confidence that inflation will
accelerate toward the Fed’s 2 percent goal. Policy makers next meet Dec.
15-16.
The likelihood of
higher rates by year-end is 68 percent, up from 50 percent at the end of
October, futures data show. Fischer said Thursday the Fed has “done
everything” it can to avoid surprising markets and governments when it
moves.
Source: Bloomberg
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